- The USD / CAD forecast shows an intense pressure on the Canadian dollar before the tariff deadline.
- Canada could face 35% tariffs if there is no trading offer soon.
- Merchants expect both Fed and Boc to break.
The USD / CAD forecast shows an intense pressure on the Canadian dollar as well as the tariff deadline of 1. August great. Canada remains among several major economies without a trade agreement. Meanwhile, market participants are prepared for BOC and Fed Policy meetings.
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Talks between Canada and the US lasted for some time. However, there is still no trading offer. To become worse, other main economies like Japan and the EU have provided contracted bids. Meanwhile, Canada could face 35% tariffs. Such an outcome would injure the Loonie further because imposition would injure the economy. The Prime Minister admitted that he would not be agreed with zero tariffs. However, the focus remains in possibly size.
“Negotiations are in an intense phase. It is complex negotiation. We will only sign a deal that is a real deal,” Carney said.
“It is impossible that there will be no offer at all without any tariffs,” said that Canada would escape to escape. “But there is a level question, there are questions about the size of the tariff.”
Meanwhile, traders expect both Fed and Boc to break. Therefore, the focus will be on messages about future moves. Meanwhile, the data was discovered more than the expected increase in American private employment, strengthening the dollar.
Today is key events USD / CAD
- BOC Policy Meeting
- Meeting with politics
USD / CAD technical forecast: Bulls that are approaching the key level of 1,3800
On the technical page, the USD / CAD price has violated above the level of resilience at 1,3750. That move strengthened the bias bias. At the same time, it pushed the price above SMA, showing that the bulls have a solid lead. Meanwhile, RSI trades in the region for overrun, supporting a strong momentum.
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In addition, after breaking over the resistance, the price retreated to re-set the level before it made higher high. This is a sign that the price could be ready to continue more. However, the bulls maintained solid rally without withdrawal back or pausing for breath.
Therefore, there could be a break at the next obstacle. USD / CAD can pause at the key level 1,33800. Still, it could eventually break upstairs to continue the rally.
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